A Buyer-Friendly Shift
YEAR OVER YEAR, THE ACTIVE LISTING INVENTORY IS HIGHER, DEMAND IS ABOUT THE SAME, AND IT IS TAKING A LOT LONGER TO SELL A HOME, WHICH TRANSLATES TO A MARKET LINING UP MORE AND MORE IN FAVOR OF BUYERS
The active listing inventory increased by 319 homes in the past two weeks, up 10%, and now sits at 3,371, its highest level since November 2022. It was the most significant rise of the year by far. Generally, at this time of year, the inventory rises at a much slower pace, but not this year. Strangely, it comes on the heels of easing mortgage rates, which is a much better environment to be a buyer. If rates continue to ease over the coming weeks, expect demand to rise and the inventory to reach its cyclical summer peak between July and August. From there, the inventory will slowly fall through the Autumn Market and pick up speed during the holiday season.
Last year, the inventory was 2,389 homes, 29% lower, or 982 fewer. The 3-year average before COVID (2017 through 2019) was 6,776, an additional 3,405 homes, or 101% more, a little more than double the current level.
Homeowners continue to “hunker down” in their homes, a phenomenon that became a crisis once rates skyrocketed higher in 2022. For June, 2,538 new sellers entered the
market in Orange County, 1,323 fewer than the 3-year average before COVID (2017 to 2019), 34% less. Last June, there were 2,284 new sellers, 10% fewer than this year. More sellers are opting to sell compared to the previous year
Excerpt taken from Stephen Thomas
